US Marshals auctioning off upstate NY sandwich chain

www.jrecksubs.comA Sept. 16, 2019, screenshot shows the homepage for Jreck Subs in New York. The franchise is up for auction by the U.S. Marshals in fall 2019.

John Carl D'AnnibaleThe state Office of General Services is responsible for selling surplus government property. The agency hosts in-person auctions and also operates an eBay account. Click through the slideshow for some of the oddest things to hit the auction block.

State Office of General Services

Workman Cycles bicycle built for two: The state of New York sure knows how to bring people together. This tandem bike (basket included!) sold for $331.50 on Oct. 12, 2017. The question is: What in the world did the state buy it for?

State Office of General Services

Stainless steel creamers: Push the boundaries of conceptual art with these bad boys. Approximately 160 sold for $41 on Oct. 11, 2017. We're expecting a gallery show any day now.

State Office of General Services

Toys, including Patriot Bear: OGS auctioned off a trove of children's toys for $31.52 on Aug. 4, 2017. The winning bidder took home a pink plastic vanity table, a baby doll stroller, farm- and zoo-themed playhouses and this furry fella — who would make the ideal holiday gift for a mail carrier.

Interested in owning a sub shop? How about a whole chain of them?

You might be in luck: The U.S. Marshals are auctioning off Jreck Subs this fall, after the previous owner was convicted of tax evasion and investment fraud in federal court.

Christopher Swartz, a Watertown restaurant entrepreneur, was sentenced this July to 12 and a half years in federal prison. The 46-year-old schemed to defraud lenders and investors out of more than $19 million, then evade more than $4 million in taxes, federal prosecutors said.

The auction winner will become the owner of Jreck Subs franchise rights, trademarks and other brand-related property. Jreck is one of the largest New York-based franchises and a popular sub chain, with about 45 stores in central and upstate New York, officials said.

The company was founded in 1967 by five high school teachers in Carthage, Jefferson County, and their first ship was a converted school bus parked outside the U.S. Army post in Watertown, according to the Jreck Subs website. Jreck is spelled using the first letters of the five original owners' names.

Potential bidders for the franchise must register and provide a $100,000 deposit by Oct. 7. Officials said that folks who don't win the auction will get their money back.

Approved bidders will have two weeks to review key financial and contract information before the sealed bid auction happens Oct. 24 to 31. Then, the top four bidders will be asked to send "best-and-final" bids between Nov. 4 to 8.

The winner bidder is expected to be notified by 5 p.m. Nov. 8 and will be required to close the transaction by No. 21.

"The U.S. Marshals serve as the primary custodian of seized property for the Department of Justice Asset Forfeiture Program," according to the federal agency. "The Marshals manage a wide array of assets, including real estate, commercial businesses, cash, financial instruments, vehicles, jewelry, art, antiques, collectibles, vessels and aircraft."

Emily Masters is a web content producer managing the Times Union homepage and social media accounts on the late shift. She also reports on cold cases and missing people. Contact her at emasters@timesunion.com or 518-454-5467.